Increasing the Acquisition of Commercial Products and Services , April 17 , 2026
Increasing the Acquisition of Commercial Products and Services , April 17 , 2026
From the document: “On April 15, 2025, President Trump issued Executive Order 14271 (the Order), Ensuring Commercial, Cost-Effective Solutions in Federal Contracts, which reaffirms and reinforces the policy that agencies shall procure commercially available products and services, including those that can be modified to fill agencies' needs, to the maximum extent practicable, including pursuant to the Federal Acquisition Streamlining Act (F ASA). The appendix to this memorandum provides guidance addressing the Order's requirement for reporting to the Office of Management and Budget (0MB), addresses additional steps to promote aggressive leveraging of the commercial marketplace, and explains the process for voluntary consulting with OMB during the agency's acquisition planning for non-commercial products and services.
For more than three decades, FASA has required federal buyers to give a preference to commercial products and services and Part 12 of the Federal Acquisition Regulation (FAR) has set forth supporting policies to facilitate broad access to the commercial marketplace. In addition, agency competition advocates have long been responsible for promoting the acquisition of commercial products and commercial services. Despite this clear direction, in FY 2024, more than two-thirds of total federal contract spending reported by agencies in the Federal Procurement Data System (FPDS) was for non-commercial products and services. This includes more than $130 billion of non-commercial contracting for common services, such as professional support services, information technology and telecom services, and operation of facilities, much of which was acquired using cost-reimbursement contracts that often allow undefined deliverables that increase the Government's exposure to loss.”
Authors - Office of Management and BudgetRelated Resources
